A leading supplier of high-pressure laminate countertops sought to expand its margins through product repositioning with value-based pricing.
A partial profile conjoint analysis was conducted via web surveys to quantify product attributes under different pricing scenarios. A series of robust and projectable demand curves were developed for the likely penetration and ramp-up of demand by considering segmentation strategies within these critical audiences in each region of the country.
The client repositioned its product and price strategy to provide a range of products aimed at a broader customer base to better reflect the price-performance value received. Repositioning led to growth in key SKUs of over 20% per year in the first three years after introduction that accounted for over 35% of the company's net profits.